Internet usage by the informal sector for taking and placing orders, using UPI increased by almost 50 percent in 2022-23 compared with the previous year, according to the results of surveys released by the government on July 5.
The share of companies using the internet for entrepreneurial purposes rose to 21.1 percent in 2022-23 compared with 13.9 percent in the previous year, according to the Annual Survey of Unincorporated Sector Enterprises (ASUSE) report.
Nearly one in three informal firms in urban areas used the internet in 2022-23, compared with one in five just a year ago. In the rural economy, the usage went up to 13.5 percent from 7.7 percent earlier.
India has one of the lowest data costs in the world, which has led to a surge in internet usage.
Usage was higher in services and trade enterprises compared with manufacturing concerns. Also, companies which hired workers tended to use the service more than family-run businesses.
“The use of the internet for entrepreneurial purposes such as taking orders online, carrying out transactions online or using UPIs, placing orders online, etc. has increased…this shows an improved use of IT and digital platforms and also indicates a fast rate of digitization taking place in the sector,” the ministry of statistics and programme implementation, which conducted the survey noted.
UPI transactions have risen nearly 40-50 percent annually since the launch.
The survey conducted by the government covers informal establishments across the country. The ministry had released a fact sheet of results last month.
The number of informal sector enterprises in the economy increased to 65 million in 2022-23 from 59.7 million in the previous year, with the firms employing 110 million workers in 2022-23, up 12 percent.
“More than one-third of this labour force was engaged in the states of Uttar Pradesh,Maharashtra and West Bengal. Proportion of female workers to total workers has marginally increased from 25.52% in ASUSE 2021-22 to 25.63% in ASUSE 2022-23,” the report found.
The output of enterprises also jumped 9.8 percent during this period. Maharashtra, Uttar Pradesh and Tamil Nadu were the top three contributors to output.
“Fixed assets owned by an unincorporated non-agricultural establishment, on average, has risen from Rs 2.81 lakh in ASUSE 2021-22 to Rs 3.18 lakh in ASUSE 2022-23 showing an improved capital investment in the sector. At the same time, Outstanding Loan per establishment has increased from Rs. 37,408 in ASUSE 2021-22 to Rs. 50,138 in ASUSE 2022-23, indicating an improvement in availability of loan in this sector,” the report further noted.
Maharashtra’s informal firms had highest assets across the country at Rs 7.15 lakh, followed by Gujarat at Rs 5.58 lakh.
Firms in Kerala were most indebted with Rs 1.68 lakh loan per establishment, over three times the national average. Andhra firms’ indebtedness was twice the national average.
Punjab had the most indebted manufacturing firms, with Rs 2.82-lakh loan per establishment.
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